tv Bloomberg Markets European Close Bloomberg February 10, 2020 11:00am-12:00pm EST
back below $50 a barrel. angela merkel's successor stepping aside, leaving the party in the country in political turmoil. and the scottish first minister tells boris johnson to grant another independence referendum. plus, that shock irish election that could put a united ireland back on the agenda. live from london, i'm guy johnson, with alix steel in new york. we are counting you down to the european close on "bloomberg markets." ♪ alix: let's take a look at u.s. markets. if you are just looking at equities, you may say it is a little bit of risk on. i may feel better about the global growth pictures. in other asset classes, the answer is definitely not. the 10 year yield down 2% as we continue to see buying into the long end of the curve, and i
continue to watch copper. you may look at oil down to $48, but copper is where the real risk on/risk off is going to be felt when it comes to fundamental china demand. so far, i do not feel inspired by that. guy: kind of what we are seeing over here, as well. the stoxx 600 is flat right now. it was much more negative, but we have come up. i think that is probably the u.s. markets and the gravitational effect of new york. euro-dollar continues to be weak , $1.0904. now we got political chaos in germany. brent crude trading at $53.96. really fascinating to see what the bp boss says to you. that is a conversation we are all looking over to. alix: let's get to the latest on the coronavirus. the death toll climbing to at least 910. chinese president xi jinping appearing in public for the first time, wearing a mask and
having his temperature taken. the government reported that consumer prices rose in the fastest rate in over 10 years. food prices have surged the most since 2008. joining us from hong kong with the latest is bloomberg's sophie kamaruddin. walk us through some of the headlines we have learned. the who was also having a presser, talking through the ramifications of the virus. sophie: we do have the w cho -- the who assessing the case around the world. isy have identified that it not necessarily a super spreader event, but even so, cautioning that cases in france and the u.k. could spark what they call a fire after the u.k. tightened its measures to contain the outbreak. eighth case in the united kingdom. and singapore, the number has risen to 45, with 23 of those being directly transmitted.
we are seeing one case pop up in the finance district, which has led several companies in that area to activate their boosted continuity operations. the who is monitoring very closely eight provinces aside from hubei as we are seeing cases pick up, which have seen more than 1000 cases in those areas. this is the china representative of who warns that it is too early to call the peak for the outbreak, and those numbers are the ones to closely watch. guy: we have finally seen xi jinping with a mask on, getting his temperature check. how important an event was that? sophie: it is the first appearance by president xi jinping after the death of the chinese doctor who flagged the outbreak back in december. a lot of scrutiny then given an pressure to authorities on the
mainland. he called for more resolute measures to contain the outbreak in hubei and elsewhere across the country. this is we are seeing disruption to transport supply chains, which has affected companies. they are seeing several operations remaining suspended, although we had hundreds of thousands of blue and white collar workers return to work on monday, but certainly not a typical back to work seen after the extended holidays. some companies like sony restarting their production, and foxconn decided to reduce some of their operations on the mainland, with just 10% of the workforce. that is going to demonstrate the long-standing impact potentially. has rewritten the supply and demand story and china. alix: thank you so much, sophie kamaruddin, joining us from hong kong. one of the issues is you can't go back to work on a production line with the facemask, and that is one of the issues for restarting factories. guy: and they are running out of
them. i've been talking to a number of companies, and the process they are going through and the roles they have to follow to bring people back into the workforce, incredibly stringent. the market clearly paying attention to this as well. let's get a sense of where we are with the dollar in particular. chris turner, ing head of fx strategy joining us in london. the dollar continuing to rise. is it the coronavirus or something else? chris: i think it is a mixture, really. we have seen after the phase one trade deal that there was new confidence and investors put confidence in emerging markets before the coronavirus. we saw good employment figures friday. at the moment, unless you see the coronavirus hit u.s. consumption, for example, to suggest that this has actually jumped completely globally, and truly hit u.s. consumption, i
think the dollar holds onto its gains. guy: we have seen dollar-cny go back through seven. 6.9, 6.8?ntinue to go what effect does the pboc action have on that? chris: they have obviously been sipping liquidity and the operation they introduced. we are frontloading the weakness in emerging-market currencies and those progress currencies. we are frontloading are forecast to within the first quarter, they are looking for gentle recovery, but the jury is out as to how far the coronavirus extends. alix: something that really struck me is how much volatility has been wrong out of any asset class, particularly fx. it barely even saw a spike. is that right? chris: i think you've got to separate two or three currencies
, so euro-dollar or dollar-yen. implied volatility is dropping to all-time lows. in emerging markets, you are seeing big volatility. we are looking at those currencies most exposed in both eem and g10 world, those big commodity exporters, those with high correlation with rich equities. those kind of currencies have been flowing around, but in the currency markets, it is very low for the time being. alix: you mentioned moving with equity assets, and that brings me to the era. euro.trade -- to the some say that could really unwind now. do we see a floor soon, or is there much more downside? chris: i think it is interesting because we did see, as you mentioned, a flow to european equities. atdidn't help the euro all, really, and it was becoming a funding currency because it with such low volatility and
interest rates were so low. it's not clear that the unwind of those long european equity positions need to deliver a big the in the euro, but reassessment of european growth products cemen -- products cements the view into 2021, really. guy: is there a coronavirus effect on the ecb? unlike the united states, which had great momentum with the payrolls, with a number of other sets of data going into this crisis, europe didn't. chris: we haven't seen that so far if you look at things like the one year-one year, looking at whether the market is going to reprice ecb customs to 2021. that hasn't really budged so far, but i think the market is playing out weak european data through the euro. europe -- when
we saw european production 0.1%le, markets expect quarter on quarter. that could be flat. the size of the hole for the european economy just got a bit larger. guy: at the back end of last year, there was also expectation that we would see fiscal policy. we are now in a situation where the french leadership is struggling. the german leadership is struggling. we saw the headlines today about akk. with that political vacuum removing the possibility that physical -- does that political vacuum removed the possibility that fiscal policy will take place? itis: we had always thought was unlikely, but it needed to happen, and an understanding that it probably wasn't going to happen. it would take a big jump in german under limit to move the needle and deliver some
meaningful fiscal stimulus. you mentioned the trouble in german politics at the moment. it just makes the progress that little bit harder. guy:guy: we will talk may be more about the fed as well. powell is on deck tomorrow in capitol hill. chris turner of ing is going to stick with us. he's the head of fx strategy. alix: let's get a check on global markets. we are seeing not a lot of movement in equities, but a tiny move up in the u.s. here is kailey leinz. you still have coronavirus fears, and that means there is buying in safer assets, but we are still seeing some buying up equities. in the u.s., you have the s&p 500 and the dow higher by about 0.3%. a bit of outperformance for the tech heavy nasdaq, higher than more than -- higher by more than 0.5%. we follow a really solid week of gains last week. if we look at the six-day chart of the s&p 500, last week was the best for the s&p since june.
we are continuing to add to those gains or the past six days. the index higher by about 3.5%. what stands up to me is this is a continuation of tech leadership. tech by far the best performing sector over the past six days. i want to focus on apple and microsoft, the mega cap techs. what i am looking at is the spread between apple and microsoft, apple's valuation and that of microsoft. they have been jockeying for the title of most valuable company. apple had been holding it since back in october, topping microsoft i more than $150 million, but with microsoft's rally so far in 2020, it is now the most viable company, topping apple -- the most valuable company, topping apple. i want to take a look inside the health care space, beginning with allegan, rising after first-quarter earnings -- with allergen, rising after
first-quarter earnings and closing its deal with abbvie. finally, mckesson higher by about 4.4% today, the best performer in the s&p 500. guy: i just want to bring everybody a piece of news out of hong kong. we were talking to sophie kamaruddin a few minutes ago. hong kong now upping the number of coronavirus cases to 42. it is also saying it is investigating six new cases of the virus. alix: definitely keep our eye on those headlines and update you as anymore cross. a programming reminder for you, we will have special coverage of the new hampshire primary tomorrow at 7:00 p.m. eastern time. you definitely don't want to miss that. this is bloomberg. ♪
guy: from london, i'm guy johnson. alix: from new york, i'm alix steel. this is the european close on "bloomberg markets." when it -- we want to give a check on first word news. here's what he could gupta. -- here's ritika gupta. ritika: the justice department has charged four members of the hacking intotry of equifax. the data breach was exposed in 2017. polls show bernie sanders has the lead a day before the democratic presidential primary in new hampshire. pete buttigieg is second, and amy klobuchar is third, but two tracking polls show about 1/3 of voters could still change their minds. president trump's new budget would spend billions more on defense, cut social programs,
and add almost $1 trillion to the debt. today, the spending plan is unveiled. still, the president's budget is more of a political document. congress has to appropriate the money. lawmakers aren't likely to finish work on the budget until after the election. and a big takeover in the mall operators industry. simon group agreed to buy a rival valued at 6.3 billion dollars, 51% premium over the close on friday. bloomberg has learned since late last year, simon and taubman had been holding talks. a wave of retail bankruptcy has operatorsres on more to consolidate. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. guy: thank, indeed. we are back with -- thank you very much, indeed. we are back with chris turner,
ing head of fx strategy. how big is politics in the rise of the dollar? chris: you've got some interesting charts showing the probability of an election win for donald trump the moment, and they have just been rocketing over the last three or four weeks, whether because of what happened in iowa. it is hard to put your finger on it. so far, there are no signs that was going on in the democratic space is enough to challenge donald trump at the moment. i think were u.s. data to slow somewhat or perhaps some success come through on the democratic side -- i am not quite sure how you define success on the democratic side -- but there hasn't really been enough. democrats obviously didn't cover themselves in glory. guy: the president would like to see a weaker dollar. chris: i think it would be very
hard frame to talk the dollar down. it got up to $100 last summer, and that was a point where he doesn't like a strong dollar. what can he do about it? normally, he would complain that fellow trading partners are undervaluing their currencies through their policies. this time around, we got the coronavirus via sleep the rating the global economy -- the coronavirus obviously de-rating the global economy. i think he will say the fed is not doing enough, so it is the fed's problem. it will be interesting to hear what powell is going to say this week. alix: that's what jay powell is any a real hot spot tomorrow when he has his semiannual testimony to congress. how does he handle that stronger dollar conversation when the balance sheet has still been asked were nearly expensive? -- has still been extraordinarily expensive? chris: there's been very weak growth in europe and asia over
the last one to two years. he would say that u.s. data is doing reasonably well at the moment. obviously, typified by payrolls numbers. when we heard in december that you would need a material change and outlook for the fed to need to have thetes and coronavirus is a new risk, it is not clear that they are prepared for that to move to a were terrio risk. -- to a material risk. alix: what do you think is going to trigger any sort of downside? we will get the budget today from president trump. our deficit is enormous. what is going to be that trigger? chris: whether something happens in the u.s. to impact consumption, consumption has really driven u.s. growth. business investment has already slowed, although we did see a after over the last month
the phase one trade deal, so we are keeping an eye on business confidence and what is happening internationally. were it not for u.s. consumption if somehowrply, domestic consumer confidence turned, the other angle for set up would be almost where we were in mid-december, after the phase one trade deal. the re-rating of the global economy, the steepening of the yield curve as people saw better growth prospects, but where we are now, that seems unlikely. we've got to push that view back into the second half of the year. guy: it is not your bailiwick, but why are u.s. rates and equities sending such different signals about the direction of travel for the u.s. economy? chris: personally, i think we don't do enough coverage of the supply side in terms of assets coming in. we move fromng something like $80 trillion to $120 trillion, so not a lot of
money is coming into asset prices at the moment. when you feel like the coronavirus demands some risks, because the fed is printing money and the benchmark rate is so low, the bar is pretty low for the equity investment decision at the moment. so i think the supply side personally really is delivering a lot of support to both the u.s. bonds and equity market. guy: what happens is the fed is happy where the balance sheet is in order to make sure the repo market can function? when does that happen? will got looks like it until april or may, and then the second half of the year, i would assume they would keep the balance sheet flat. they wouldn't try to shrink it as a have been doing guy: how do you get it down a bit -- shrink it as they have been doing. how do you get it down a bit? presumably it would start to fade.
you could argue that if we had seen real sector impact from the coronavirus and the hard data for q1 and q2, you might have a better handle in the second half of the year if the impact on the global economy, the assumption of chinesebe 0.3% growth, but not enough to trigger a global recession. we haven't seen the yield curve inverted. it is just very flat. guy: chris, great seeing you. . thanks for stopping by. chris turner, ing head of fx strategy. this is bloomberg. ♪
$24 a share in cash and stock, two dollars higher than its previous offer. hp argued that the previous bid undervalued the company. ,ne of my favorite stories carlos ghosn is going to hollywood. the former nissan executive who made a daring escape from japan has hired legendary agent michael hoven to negotiate his film and tv projects. insn forfeited $14 million bail money by fleeing. he was president of disney and received $140 million in severance payments for a year's work. . when you spend a lot of money escaping from a jail, you need a movie to make money. 0.7s&p still up by about 5%. even if apple is not doing great today, it is hard not to buy t h
buy the buy tech, to momentum. by 0.2% acrossn the board, as you can see. ftse 100, oil is down, some of the mining stocks down. the dax is down by about 0.2%. strong market last week. equities were rallying here in europe. slight stabilization when it comes to the equity story today in europe. the european close is coming up. we will give you all the details when we return. this is bloomberg. the european close is coming up next. ♪ sometimes your small screen is your big screen.
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pretty mixed. , look at i would flag the left-hand side of your screen. you will see a bright red dot. the irish market under pressure as a result of the election. we are actually at session highs. we started off much more negative. the story coming out of asia more negative than we see now. as a result, we have climbed the wall, and as you can see from the stoxx 600 point of view, we are finishing up around .1%. let's take it the individual made markets. they are more negative. ftse 100 has been dragged down by oil stocks and mining stocks. by dax is being dragged down car stocks. the cac 40 is being dragged down by car stocks. the auto sector one of the worst performing sectors. let me show you that. you've realnd,
estate comey you've construction, you financial services. -- you have real estate, you have construction, it is real estate where the excitement lies. people back out of the commodity trade. you have the auto sector trading 1%. the mining sector down .7%. definitely coronavirus related. the commodity story front and center. weakness in copper and weakness in the crude market affecting the ftse 100. individual names, let's focus on a few. politics front and center. there is the bank of ireland. a party doing much better than expected in the irish election and that has caused some consternation in the irish banking sector. stop down 8.31%. bhp is one of the miners in focus. alix steel will talk about proper and just a moment.
we are seeing bhp potentially diverse shipments of copper into china and we have been talking about what is been happening with the cruise sector. this princess lines cruise ship is being of japan and quarantined. that stock down 2.2%. there are bits of the travel and leisure sector that are under pressure. i highlight those irish banks, down 8.3%. that is the european close. alix: huge move when it comes to the irish banks. let's take a look at what is moving in the u.s. on the headline s&p up .4%. you would think that might be good, but let's dig between the lines. 1% becauseindex off of crude prices rolling over. also diamond offshore had a gloomy outlook, saying they could be cash flow negative if the market does not improve. they are in offshore oil driller.
offshore is where the action is taking place. that was bad omens for the market. if you want more bad omens, take a look at the copper market and the treasury market. , bid into long end yields 1.56's were reprint on the 10 year and copper might want to stay stabilizing but we are still down .2%. copper is the real barometer for when will china demand two? --re is so much inventory demand pick up? there is so much inventory, they will have to weed through all of that before buying more metal. guy: let's get back to the political story. the race to be the next german chancellor thrown wide open. german]g >> i will not run as the chancellor candidate. just as i have announced that i am coming to the process to come to a chancellor candidate for
the cdu. guy: annegret kramp-karrenbauer announcing she will step down as the leader of the christian democratic union and will not run as the parties candidate or chancellor. joining us with the latest from berlin is bloombergs german editor. a surprise? chris: definitely a surprise. it came out of the blue. to some extent it has been building for the last several months. -- since she has been in charge of the eu she has struggled with her public blow file. she has made gaps and the straw that broke the camels back came ingia where sheur failed to rein in a state chapter. she came away from a crisis empty-handed and she is taking the responsibility. alix: the regional part of the
politics matters quite a lot. when you take a look at a broader sense. the market wants fiscal stimulus from germany. the rhetoric is we may not get it. what does this do to that conversation? the situation throws germany wide open for the next 16 months. you will not have any major political springs. -- political swings. the ruling party is in crisis. the junior coalition that does not want to be a part of the coalition is in crisis. neither of the ruling coalition party have candidates. you have angela merkel in the final leg of her political career taking center stage and saying she will play a role in choosing her successor. akaka wasnk back, supposed to be -- akk was supposed to be that successor in
the cdu has 18 months to get things on the right track. in the meantime, political opponents will not be sitting still. there's a lot going on with germany. there is a lot at stake in europe. germany, which is the engine of europe is going to be spinning its wheels and looking very inward for the next 18 months. who are the front runners succeed angela merkel now? chris: since angela merkel came out a few minutes ago and said she was going to insert herself into the process of choosing her successor, the process will be led by akk, but her political capital is used up. by angela merkel saying she will play a role, that means another centrist approach to the party, very much in the angela merkel mode. leadingsense, the candidate is probably the head of the state chapter and the
minister president. he is very much a centrist. runner.obably the front again, it could be people we do not know coming out of the woodwork. other leading contenders, jans spahn is from the conservative side, the you have an old nemesis of angela merkel -- and then you have an old nemesis of angela merkel. with angela merkel inserting herself in the process, it probably makes the right-wing candidates, it makes it more difficult for them. i would keep your eyes on anyone in the centrist mode. it will be an open race. this will be her second bite at the apple. we have to see how she manages it. guy: that will be fascinating to watch. thank you very much. our german editor joining us
from berlin. alix: scotland is planning a new vote on independence later on this year. nicola sturgeon warns about boris johnson moving toward a hard brexit. he spoke with maria tadeo in brussels. now think boris johnson is headed down a path that will end in a hard brexit where trait with the european union becomes much more difficult. it seems to be a choice of a hard brexit or a harder brexit. that is not in the interest of the u.k. or scotland. we are trying to the best of my processto influence the in a way that keeps trade with europe as free as possible. guy: scotland's first minister. joining us is bloombergs jared wallace to talk about scottish independence. i'm not sure having a wallace talk about scottish independence
is the best historical way to go. what are the chances of boris johnson granting a second referendum? it would seem small. >> very small. i would be hesitant to say never. he seems very against it. in the current circumstance when he is trying to negotiate trade deals with everyone and establishes own government, does he want another independence referendum? on the other hand, if you are nicola sturgeon, you are saying one of the main reasons people voted of staying in the u.k. was assurances we would stay in the eu. it seems like a somewhat insurmountable problem between the two. alix: where is this going to play out with all of the trade negotiations force johnson is trying to negotiate? he has five he is trying to do at the same time? stuart: at least. the way it plays out is due at
the pressure. the way i understand it there is no way nicola sturgeon can force a vote. the scottishoes assembly have the right to a consultancy about? in some sense it is about embarrassing the government enough to allow this to go through. i do not think she has a lot of leverage in terms of the short term. guy: can i change the ankle but talk about the same subject, election.he irish is of their central planks there should be a united ireland. with them doing so well in ireland, is that going to encourage that as a concept or do you think boris johnson would have no truck with that? stuart: to some extent. ein didaccounts sinn f well not because it once united
ireland, it was focused on rent, rent control, housing. one of the most important things about the election is people were not voting for sinn feinn as the arm of the ira, they were voting for it because they talk about the issues voters cared about. to link that with the idea of unity and does that play to scottish referendum, yes, to some extent, but i feel like it is a side issue in this election. guy: do think brexit played a part? brexit has once again reunited that issue. brexit was certainly a big feature of the landscape during this election. do you think that played a part in sinn fein doing as well as it did and i bring it back united ireland. stuart: absolutely a plate apart. the reporting we have would indicate it was damaging for sinn fein's opponents and put
them in an awkward position when they cannot win. did brexit benefit sinn fein directly in terms of there is confusion going on, here is an opportunity get what we want? maybe less so. guy: always a pleasure. bloombergs stuart wallace. alix: i've ever the days when stuart would cover oil with me. let's check in on bloombergs first word news. -- ritika: the global death toll of the coronavirus is 900 and 10, more people than died in the sars epidemic. china says the number of confirmed cases is more than 40,000. 60 more cases have been found on the cruise ship quarantined in japan. 130 cases of the coronavirus have been discovered on that ship. the u.s. navy is asking for $4 billion less in new ships next year. that set off a battle with navy supporters in congress.
the navy is cutting back on the number of ships it wants to buy this year and next year. if congress does provide more money for ships, the navy would still have to provide cruise and sale them. that is the part of the budget that is growing the fastest. in germany, the political landscape has been upended. angela merkel's designated successor is stepping down as head of the countries barges. --mpt karen bauer kramp-karrenbauer says she will not run for chancellor. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am ritika gupta. this is bloomberg. guy? guy: thank you very much. the european stocks have settled. during thet of a dip auction process but not a big one. we finish off session lows but a
is shopping mall developer taubman centers. it is up more than 60% on the news of rival simon properties group agreeing to buy it in an all cash deal valued at $3.6 billion. let's look at the details. taubman families can retain 20% $52.50. good taubman -- why location, location, location. they have premium retail malls in asia and the u.s. bet thatee this big simon is making. the chart we will pull up tells you a tale of three outlets. you can see how well internet is doing at malls, department stores not so much. people are shopping but they are moving online. that has increased pressure on brick-and-mortar retail sales. store closures like macy's,
forever 21, taubman has significant exposure. if you were to pull back the premium five years, it is not even close to breaking even. this is a big bet for simon but simon and rival parkfield property are looking at a shift in real estate for a focus on entertainment and services. there are successful malls in new jersey and new york. simon does have an advantage of a strong balance sheet in a position to make this investment. that is your stock of the hour. alix: thanks so much. guy: let's talk about politics once again. it seems to be a big theme today. pete buttigieg appears to have sealed his victory in iowa after the technical glitch in the caucuses. attention turning to tomorrow night's new hampshire primary. joining us from manchester, new hampshire is bloombergs kevin cirilli.
we are talking about pete buttigieg. what i want to know is how is mr. biden doing? strugglingbiden is in the polls but i am here in upstate new hampshire along the border with vermont, where senator bernie sanders is expected to speak within the next half-hour, seizing upon momentum. his campaign has shifted its focus in terms of how it has been projecting itself as now democratic presidential front runner. they are taking on criticism from the democratic establishment and they say they are best positioned to defeat the incumbent in the reelection. byy say they will do that having an inclusive economic message. they are also sharpening their attacks and pushing back on the notion that his self label of a democratic-socialist would hinder his chances in november. they are saying it is president trump who is an "corporate socialist" and that is how they would defend themselves.
expectations are that senator sanders would perform strongly in tomorrow's new hampshire primary. that is setting him up for a strong showing for the long run. should biden dwindle, that would raise a significant question about how long his campaign can continue. alix: also, sanders will not benefit from klobuchar leaving the race or biden. as we weed through the field, how does sanders get more of the other people's votes? kevin: that is a great questions. the more centrist candidates in the race, the more the vote helps biden. we should also note that senator sanders is benefiting from something neither of the other candidates have, which is that he has done this before. he has the ground game, he has the grassroots group and the ability to mobilize and organize in a way some of these other
candidates have never done before. whether or not he is able to transition that momentum from iowa and new hampshire into south carolina and the california primary is the biggest question mark, especially as candidates begin to drop out. i am also keeping an eye on amy klobuchar. she had a strong showing in the debate in manchester friday night. she is trying to seize on momentum. they have come out forcefully against pete buttigieg, who according to the three polls released in the last 24 hours is running second in the granite state. guy:
into some of the super tuesday states? we have any idea at this point if we were to see pete buttigieg doing well in new hampshire, how that would translate into places like california, places like texas? kevin: some democratic strategists have raised the issue of diversity in the electorate in states like iowa and new hampshire. we will get a more diverse electorate in south carolina. this represents the portion of the electorate that is the 70,000 voters that one for obama and then went for trump. bernie sanders has he can win back those voters, as is amy klobuchar. when it comes to where these things head, there will be pressure on the candidates that drop out of the race because they will not have the money to keep going forward, especially if they do not have a strong showing in new hampshire. guy: absolutely. kevin, thanks very much. we look forward to the coverage. kevin cirilli joining us in new hampshire. special coverage from the new hampshire primary tomorrow night. we will start that at :00 p.m. eastern. this is bloomberg. -- at 7:00 p.m. eastern. this is bloomberg. ♪ when it comes to using data,
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simple. easy. awesome. guy: from london, i'm guy johnson. alix: from new york, i'm alix steel. this is "the european close" on bloomberg markets. here's a look at some of the biggest business stories and news right now. helpjoining other banks to business customers make it through the coronavirus outbreak. it is now providing 3.9 million dollars in liquidity relief. hsbc is offering a repayment moratorium. the same for those with public loans. a parent of mercedes-benz will announce as many as 15,000 jobs tomorrow according to a german newspaper. daimler already said it would eliminate 10,000 jobs. the automaker wants to reduce the amount it spends outside the core business. samsung showed off its new more
compact disposable smartphone last night. the debut took place in a commercial during the oscars. bloomberg learned the phone will be called the galaxy z flip. there'll be a launch event tomorrow in san francisco. so i want flip phones now? i thought i thought it cannot have one. they're not cool. it makes me feel old. guy: i remember them. i remember the brakes that preceded the flip phones. have a great flight. we look forward to seeing you in london tomorrow. coming up is "balance of power." david westin is a new hampshire good he will be talking to the acting office of management and budget director. obviously a big theme today. this is bloomberg. ♪
audiences worldwide, i'm david westin. welcome to "balance of power" where the world of politics meets the world of business. we are broadcasting live for new hampshire for the new hampshire primary, which starts tomorrow. we want to start with the policy proposals of the current president. joining us from the white house is the acting director of the office of management and budget, russell vought. what are the headlines of the budget proposal? >> it is a very important budget proposal. it balances the budget with four $.6 trillion of deficit reduction. more than any president has proposed in history. we have a 5% cut to nondefense discretionary spending. we keep defense growing. we make reforms where necessary with programs like welfare reform to get